Doing business in Switzerland
PPKKFF Doing Business in Switzerland -
Contents
Introduction PKF Switzerland
INTRODUCTION 7 COUNTRY PROFILE 7
DOMESTIC POLITICS 7
ECONOMIC OVERVIEW 8
COMPETITIVE ADVANTAGES 9 Education System 9 Telecommunications / IT 9 Transport System 9 Quality of Life 10 Competitive tax Environment 10 Government Support 10
LIVING AND WORKING IN SWITZERLAND 11 REQUIREMENTS TO ENTER 11
WORKING IN SWITZERLAND 11 EU Nationals 11 Non EU Nationals 12 Swiss Permits 12
REGISTRATION 13
EMPLOYMENT CONTRACT AND WORKING CONDITIONS 13
ACCOMMODATION AND LIVING EXPENSES 13
SOCIAL SECURITY SYSTEM 14 Pillar I 14 Pillar II 14 Pillar III 14 Health Insurance 14
PPKKFF Doing Business in Switzerland -
TAXATION 15 Tax on Personal Income and Wealth 15 Exceptions 16
RESIDENTIAL REAL ESTATE 18 Other formalities 19
DOING BUSINESS IN SWITZERLAND BANKING AND FINANCE 20 SWISS BANKING 20
REGULATORY SYSTEM 20 Legal forms of banking regulation 20 Swiss Financial Market Supervisory Authority (FINMA) 21 SIX Swiss Exchange and the Swiss Bankers Association 21 Supervision of UBS & CS Group (the Big Banks) 22 Siwss Nationale Bank 22 Supervision of other banks & security dealers 22
RELATIONS WITH CLIENTS 23
OPENING A SWISS BANK ACCOUNT 24 Private 24 Corporate 25
MONETARY POLICY AND INTEREST RATE STABILITY 25
SWISS FINANCIAL MARKET 26
OVERVIEW 26 Six Swiss Exchange 26
BUSINESS ENVIRONMENT 27 Securities Dealers 27 Portfolio Managers and Financial Intermediaries 27 Collective investment schemes legislation 28
DIONG BUSINESS IN SWITZERLAND 29 BUSINESS STRUCTURES 29
OVERVIEW 29
BUSINESS STRUCTURES 30 Stock Corporation 30 Limited Liability Company 32 Partnerships 33 Sole Properietorship 34 Branches 35
PPKKFF Doing Business in Switzerland -
ESTABLISHMENT PROCEDURES 36
SWISS CORPORATE TAXATION 36 Introduction 36 Income Tax 36 Capital Tax 37 Withholding Tax 37 Special Tax Regimes 38 Holding Companies 38 Domiciliary Company 38 Mixed Company 38 Others 38 Stamp Duties 38 Real estate taxes 39 Value Added Tax 39 Double Taxation Treaties 39
INCENTIVES AND SUBSIDIES 39
REAL ESTATE 40 Property Acquisition 40 Property Rental 40
APPENDIX I 41 USEFUL ADDRESSES AND WEBSITES 41 APPENDIX II 42 SWISS TAX FRAMEWORK 42
APPENDIX III 43 MAIN SWISS VEHICLES 43
PKF Certifica SA is a member firm of the PKF International Limited network of legally independent firms and does not accept any responsibility or liability for the actions or inactions on the part of any other individual member firm or firms.
PPKKFF Doing Business in Switzerland
Forword
Think Global, Act Local
PKF Switzerland is a member of the PKF International network.
PKF International Limited (PKFI) administers PKF network of legally independent member firma PKFI is
the 10TH largest global accountancy network and its member firms have $2.4 billion aggregate fee
income (year end June 2010).
The PKF network has over 245 member firms and correspondents in 440 locations in around 125
countries providing accounting and business advisory services PKFI member firms have around 2200
partners and more than 21.000 staff.
PKF International is a network member of the Forum of Firms, an organisation dedicated to consistent
and high quality standards of financial reporting and auditing practices worldwide.
PKF Switzerland is a forum of legally independent, locally based and globally oriented member firms of
PKF International, whose mission is to provide their clients with a personalised quality service whilst
cultivating the values of integrity, professionalism and independence.
Each member company of PKF Switzerland enjoys the advantages of a close relationship with the local
market and each individual client, simultaneously providing a complete range of services at world-class
standards. PKF Switzerland is able to combine a high quality audit and advisory approach with an in
depth knowledge of the local market and tailor-made services for small and medium enterprises.
Creative solutions grounded in practical experience and a high level of expertise is the idea behind
PKF business thinking.
PPKKFF Doing Business in Swizzerland
Dynamism, professionalism and an international network at your
service:
Assurance
Internal Audit
Forensic
Business Consulting
Tax
Accounting
PPKKFF Doing Business in Swizzerland
SWITZERLAND: KEY FACTS
Full Country Name Swiss Confederation
Capital Bern
Government Type Federal state
Currency Swiss Franc (CHF)
GDP per capita (PPP) $70,000
Exports Machinery, chemicals, metals, watches, agricultural products
Imports Machinery, chemicals, vehicles, materials, agricultural
products, textiles
Population 7.7 million
Area 41, 290 sq km
Major Religion Roman Catholic, Protestant
Language German, French, Italian, Romansch
Major Cities Bern, Zurich, Geneva, Basel, Lugano
Climate Central European, Mediterranean
Time Zone GMT/UTC +1
Dialling Code + 41
PPKKFF Doing Business in Swizzerland
in Switzerland
Lugano, TI _______________________
PKF Certifica SA
Via Pretorio 9 CH - 6900 Lugano
Tel: + 41 91 911 11 11 Fax: + 41 91 911 11 12
[email protected] www.pkfcertifica.ch
Genve, GE _______________________
SCF Rvision S.A.
Route des Acacias 54 CH -1227 Carouge
Tel : + 41 22 301 54 40 Fax : + 41 22 301 54 70
[email protected] www.scfid.ch
Zurich, ZH
_______________________
PKF Consulting AG Lavaterstrasse 40 CH - 8002 Zurich
Tel: + 41 44 285 75 00 Fax: + 41 44 285 75 70
[email protected] www.pkf.ch
Zurich, ZH _______________________
PKF Wirtschaftsprfung AG
Lavaterstrasse 40 CH - 8002 Zurich
Tel: + 41 44 285 75 65 Fax: + 41 44 285 75 70
[email protected] www.pkf.ch
Zug, ZG
_______________________
PKF Consulting AG Metallstrasse 9 CH - 6304 Zug
Tel: + 41 41 711 86 83 Fax: + 41 44 287 75 70
[email protected] www.pkf.ch
mailto:[email protected]://www.pkfcertifica.chmailto:[email protected]://www.scfid.chmailto:[email protected]://www.pkf.chmailto:[email protected]://www.pkf.chmailto:[email protected]://www.pkf.ch
PPKKFF Doing Business in Swizzerland
PPKKFF Doing Business in Swizzerland - 7
Introduction Country Profile Switzerland is an ideal example of a successful multicultural and multilingual society living in a
harmonized way. The Swiss Confederation occupies a small landlocked territory of about 41,290
square km and has a population of 7.7 million. Strategically located in the heart of Europe, it shares
borders with Germany, France, Italy, Austria and Liechtenstein.
The linguistic geography of Switzerland is very broad and consists of four languages: German, French,
Italian and Romansch (based on Latin and spoken by a small minority in the Canton Graubunden).
English is widely spoken especially among professionals.
Domestic Politics
Switzerland has a stable, consensus-based, governance system designed to cultivate direct
democracy. The 26 cantons are the member states of the Federal State of Switzerland. As a highly
decentralized true confederation of states, political and administrative responsibilities are divided
among the federal (national), cantonal and municipal levels of government. Each canton has its own
constitution, code of civil procedure and parliament chamber. The Constitution provides for the
separation of the three branches of government: the Federal Assembly, the Federal Council and the
Federal Tribunal.
Being located at the heart of the European Economic Area (EEA) there is a well-established Swiss-EU
relationship mostly concerning trade, labour and transport issues.
PPKKFF Doing Business in Swizzerland - 8
Economic Overview Switzerland is a peaceful, prosperous and modern market economy with a per capita GDP among the
highest in the world. The economic downturn has not been as deep in Switzerland as in most other
OECD countries. The relative lack of imbalance and debt burden is expected to allow the Swiss
economy to return to the pre-crisis levels of economic activity faster than its west European peers.
GDP: Stable with high indicators. Average annual GDP varies between 450 and 500 billion
(US$).
Inflation: Low inflation with constant indicators between 0.5 and 2 per cent.
Unemployment: Switzerland has one of the steadiest and proactive employment markets
offering top-quality employee benefit solutions. Shows lowest unemployment levels in Europe.
Private Consumption: Being strongly correlated with the GDP development, the interest rate
level and the monetary environment, private consumption in Switzerland is rather strong (55% of
GDP approximately), driven by a generally positive consumer sentiment.
Industrial Production: Swiss industrial production is focused on value-added products such
as pharmaceuticals, electronic devices, preci
